Bank Statements - lender point of view

sl9192

Hi all,

Very sorry if this is repetitive. I have a search of the forums and couldn't find the exact answer I was after.

I'm a FTB and will be getting a joint mortgage with OH who is also a FTB. I understand when going to a mortgage broker it's required that I provide 3-6 months of bank statements. I've just had a look at my paper statements that I ordered and it shows a total outgoing vs ingoing. On one month the outgoings are slightly higher than incoming- but this is because I'm paid weekly and sometimes it falls into the next month. I get paid £305 a week and I put £200 into my savings each week so my current account balance is always very low. Sometimes If there is an unexpected expense or I get paid late, I go into my arranged overdraft, but always top this up from my savings so I'm not overdrawn for more than a day. My question is how much scrutiny do these bank statements face? I'm paranoid that it will be my downfall.
We're looking at a 90% LTV mortgage on a £110k property over 30 years.
Any broker advice would be highly appreciated.

Thank you!

Sami_-Finbud

Most banks will require 3 months bank statements.

In your case as your putting £200 (voluntary expenditure) away into your savings account, as long as the lender is aware of this then it should be ok.

You need to be careful not get any defaults or late payments showing up on your credit file as this will limit your options when seeking a lender

sl9192

Hi,
Thanks you that's good to know no I've never defaulted or had a late payment on my credit score thankfully. It's frustrating though as I work for a tiny company we do sometimes get paid late which messes up my Direct Debits. I have a £250 arranged overdraft which I've never gone over and into unplanned - so I'm hoping it won't look too bad. Is there anything I can provide, for example an explaination like the one I have given here? Or will lenders come to their own conclusions?

Sami_-Finbud

If your going direct to a lender it may be best to bring a statement of your savings accounts.

If your going through a broker they should record the £200 towards savings on the fact find and it should be on the application they submit for you. The broker may then come back to you if lender has requested to see statement of savings.